Following Mark Carney’s warnings over a Brexit vote, the Treasury select committee’s chairman has requested a copy of the Bank of England internal guidelines covering its interventions in the EU referendum debate.
Andrew Tyrie has written to the Bank of England governor to get clarification, demanding a response within 24 hours, according to the letter.
The move follows tense exchanges in a committee meeting yesterday (24 May), with Mr Carney defending his stance on the referendum and accusing one particularly critical MP of trying to “undermine” the Bank of England’s remit.
Committee member and MP for North East Somerset, Jacob Rees-Mogg, argued as the Bank of England would not comment on opposition economic policy during a general election campaign, it should not comment on the effects of a UK departure from the EU during the referendum campaign.
Mr Carney had previously stated a vote to leave “could possibly include a technical recession”, which led Mr Rees-Mogg to call for him to resign.
Yesterday (24 May) he told the governor: “It’s very convenient that you’re giving out the same propaganda as the chancellor”, to which Mr Carney pointed out this is not a general election, so the same rules do not apply.
Mr Rees-Mogg said: “We have a responsibility to discharge our remit and we have a wider responsibility to the British people, who don’t want risks kept from them.”
To which Mr Carney responded the Bank of England’s remit was to deliver “low, stable, predictable inflation”.
He continued: “It may be inconvenient for you, but we have made it more likely that we will bring inflation back to target, whatever the outcome of the referendum, sooner and more sustainably, and that will be a better economic outcome.”
peter.walker@ft.com
